Exhibit 10.5


 


StoneBridge Acquisition Corporation


c/o Maples Corporate Services Limited


PO Box 309, Ugland House, Grand Cayman


Cayman Islands, KY1-1104


 


February 5, 2021


 


StoneBridge Acquisition Sponsor LLC


1104 Linnea Ln, Soutlake,


Texas 76092


 


RE: Securities Subscription Agreement



 


Ladies and Gentlemen:


 


This agreement (the “Agreement”)
is entered into on February 5, 2021 by and between StoneBridge Acquisition Sponsor LLC, a Delaware limited liability company (the
 “Subscriber” or “you”), and StoneBridge Acquisition Corporation, a Cayman Islands exempted
company (the “Company”, “we” or “us”). Pursuant to the terms hereof,
the Company hereby accepts the offer the Subscriber has made to purchase 5,750,000 shares (the “Shares”) of
Class B ordinary shares, $0.0001 par value per share (the “Class B Ordinary Shares”) up to 750,000 of which
are subject to forfeiture by you if the underwriters of the initial public offering (“IPO”) of units of the
Company (the “Units”), do not fully exercise their over-allotment option (the “Over-allotment Option”).
The Company and the Subscriber’s agreements regarding such Shares are as follows:


 


1.                  
Purchase of Shares. For the sum of $25,000, which the Company acknowledges receiving in cash, the Company hereby issues
the Shares to the Subscriber, and the Subscriber hereby purchases the Shares from the Company, subject to forfeiture, on the terms
and subject to the conditions set forth in this Agreement. Concurrently with the Subscriber’s execution of this Agreement,
the Company shall, at its option, deliver to the Subscriber a certificate registered in the Subscriber’s name representing
the Shares (the “Original Certificate”), or effect such delivery in book-entry form. All references in this
Agreement to shares of the Company being forfeited shall take effect as surrenders for no consideration of such shares as a matter
of Cayman Islands law. Upon the issuance of the Shares, the Subscriber hereby surrenders for no consideration the one Class B
ordinary shares of the Company held by it following the incorporation of the Company.


 


2.                  
Representations, Warranties, and Agreements.


 


2.1              
Subscriber’s Representations, Warranties and Agreements. To induce the Company to issue the Shares to the
Subscriber, the Subscriber hereby represents and warrants to the Company and agrees with the Company as follows:


 


2.1.1         
No Government Recommendation or Approval. The Subscriber understands that no federal or state agency has passed
upon or made any recommendation or endorsement of the offering of the Shares.


 


2.1.2         
No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Subscriber of
the transactions contemplated hereby do not violate, conflict with or constitute a default under (a) the formation and governing
documents of the Subscriber, (b) any agreement, indenture or instrument to which the Subscriber is a party, or (c) any law, statute,
rule or regulation to which the Subscriber is subject, or any agreement, order, judgment or decree to which the Subscriber is
subject.


 






    	 	 



     


    

 


2.1.3         
Organization and Authority. The Subscriber is a Delaware limited liability company, validly existing and in good
standing under the laws of Delaware and possesses all requisite power and authority necessary to carry out the transactions contemplated
by this Agreement. Upon execution and delivery by you, this Agreement is a legal, valid and binding agreement of Subscriber, enforceable
against Subscriber in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency,
fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally and subject to general principles
of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).


 


2.1.4         
 Experience, Financial Capability and Suitability.


 


(a)               
Subscriber is: (i) sophisticated in financial matters and is able to evaluate the risks and benefits of the investment
in the Shares and (ii) able to bear the economic risk of its investment in the Shares for an indefinite period of time because
the Shares have not been registered under the Securities Act of 1933, as amended (the “Securities Act”) and
therefore cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available.
Subscriber is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect its
own interests.


 


(b)               
Subscriber must bear the economic risk of this investment until the Shares are sold pursuant to: (i) an effective
registration statement under the Securities Act or (ii) an exemption from registration available with respect to such sale. Subscriber
is able to bear the economic risks of an investment in the Shares and to afford a complete loss of Subscriber’s investment
in the Shares.


 


2.1.5         
Access to Information; Independent Investigation. Prior to the execution of this Agreement, the Subscriber has had
the opportunity to ask questions of and receive answers from representatives of the Company concerning an investment in the Company,
as well as the finances, operations, business and prospects of the Company, and the opportunity to obtain additional information
to verify the accuracy of all information so obtained. In determining whether to make this investment, Subscriber has relied solely
on Subscriber’s own knowledge and understanding of the Company and its business based upon Subscriber’s own due diligence
investigation and the information furnished pursuant to this paragraph. Subscriber understands that no person has been authorized
to give any information or to make any representations which were not furnished pursuant to this Section 2 and Subscriber
has not relied on any other representations or information in making its investment decision, whether written or oral, relating
to the Company, its operations and/or its prospects.


 


2.1.6         
Regulation D Offering. Subscriber represents that it is an “accredited investor” as such term is defined
in Rule 501(a) of Regulation D promulgated under the Securities Act and acknowledges the sale contemplated hereby is being made
in reliance on a private placement exemption to “accredited investors” within the meaning of Section 501(a) of Regulation
D promulgated under the Securities Act or similar exemptions under state law.


 


2.1.7         
Investment Purposes. The Subscriber is purchasing the Shares solely for investment purposes, for the Subscriber’s
own account and not for the account or benefit of any other person, and not with a view towards the distribution or dissemination
thereof. The Subscriber did not decide to enter into this Agreement as a result of any general solicitation or general advertising
within the meaning of Rule 502(c) of Regulation D promulgated under the Securities Act.


 


2.1.8         
Restrictions on Transfer; Shell Company. Subscriber understands the Shares are being offered in a transaction not
involving a public offering within the meaning of the Securities Act. Subscriber understands the Shares will be “restricted
securities” within the meaning of section (a)(3) of Rule 144 promulgated under the Securities Act (“Rule 144”),
and Subscriber understands that the Certificates (as defined in Section 3.3)
or book-entries representing the Shares will contain a legend in respect of such restrictions. If in the future the Subscriber
decides to offer, resell, pledge or otherwise transfer the Shares, such Shares may be offered, resold, pledged or otherwise transferred
only pursuant to (a) registration under the Securities Act covering such offer, resale, pledge or other transaction or (b) an
available exemption from registration. Subscriber agrees that if any transfer of its Shares or any interest therein is proposed
to be made, as a condition precedent to any such transfer, Subscriber may be required to deliver to the Company an opinion of
counsel satisfactory to the Company. Absent registration or an exemption, the Subscriber agrees not to resell the Shares. Subscriber
further acknowledges that because the Company is a shell company, Subscriber may not be able to rely on Rule 144 promulgated under
the Securities Act with respect to the resale of the Shares until one year following consummation of the initial business combination
of the Company, despite technical compliance with the requirements of Rule 144 and the release or waiver of any contractual transfer
restrictions.


 






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2.1.9         
No Governmental Consents. No governmental, administrative or other third-party consents or approvals are required,
necessary or appropriate on the part of Subscriber in connection with the transactions contemplated by this Agreement.


 


2.2              
Company’s Representations, Warranties and Agreements. To induce the Subscriber to purchase the Shares, the
Company hereby represents and warrants to the Subscriber and agrees with the Subscriber as follows:


 


2.2.1         
Organization and Corporate Power. The Company is a Delaware corporation and is qualified to do business in every
jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on the financial
condition, operating results or assets of the Company. The Company possesses all requisite corporate power and authority necessary
to carry out the transactions contemplated by this Agreement.


 


2.2.2         
No Conflicts. The execution, delivery and performance of this Agreement and the consummation by the Company of the
transactions contemplated hereby do not violate, conflict with or constitute a default under (a) the certificate of incorporation
or by-laws of the Company, (b) any agreement, indenture or instrument to which the Company is a party, or (c) any law, statute,
rule or regulation to which the Company is subject, or any agreement, order, judgment or decree to which the Company is subject.


 


 


2.2.3         
Title to Securities. Upon issuance in accordance with, and payment pursuant to, the terms hereof, the Shares will
be duly and validly issued, fully paid and nonassessable. Upon issuance in accordance with, and payment pursuant to, the terms
hereof, the Subscriber will have or receive good title to the Shares, free and clear of all liens, claims and encumbrances of
any kind, other than (a) transfer restrictions hereunder and other agreements to which the Shares may be subject which have been
notified to the Subscriber in writing, (b) transfer restrictions under federal and state securities laws, and (c) liens, claims
or encumbrances imposed due to the actions of the Subscriber.


 


2.2.4         
No Adverse Actions. There are no actions, suits, investigations or proceedings pending, threatened against or affecting
the Company that: (a) seek to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated
by this Agreement or (b) question the validity or legality of any transactions or seeks to recover damages or to obtain other
relief in connection with any transactions.


 






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3.                  
 Forfeiture of Shares.


 


3.1              
Partial or No Exercise of the Over-allotment Option. In the event the Over-allotment Option granted to the underwriters
of the IPO is not exercised in full, the Subscriber acknowledges and agrees that it (or, if applicable, it and any transferees
of the Shares (such transferees, the “Initial Stockholders”)) shall forfeit any and all rights to such number
of Shares (up to an aggregate of 750,000 Shares, pro rata based upon the percentage of the Over-allotment Option exercised)
such that immediately following such forfeiture, the Subscriber (and all other Initial Stockholders prior to the IPO, if any)
will own an aggregate number of Shares (not including any Shares issuable upon exercise of any warrants or any Class A ordinary
shares, par value $0.0001 per share (the “Class A Ordinary Shares”, together with the Class B ordinary shares,
the “Ordinary Shares”) purchased by Subscriber or any other Initial Stockholder in the IPO or in the aftermarket)
equal to 20% of the issued and outstanding Shares immediately following the IPO.


 


3.2              
Termination of Rights as Stockholder. If any of the Shares are forfeited in accordance with this Section 3,
then after such time the Subscriber (or Initial Stockholder or other successor in interest), shall no longer have any rights as
a holder of such forfeited Shares, and the Company shall take such action as is appropriate to cancel such forfeited Shares.


 


3.3              
Share Certificates. In the event an adjustment to the original certificates representing the Shares (the “Original
Certificates”), if any, is required pursuant to this Section 3, then the Subscriber shall return such Original
Certificates to the Company or its designated agent as soon as practicable upon its receipt of Notice (as defined in Section
6.2) from the Company advising Subscriber of such adjustment, following which a new certificate representing the Shares (the
 “New Certificate” and together with the Original Certificates, the “Certificates”), if any,
shall be issued in such amount representing the adjusted number of Shares held by the Subscriber. The New Certificate, if any,
shall be returned to the Subscriber as soon as practicable. Any such adjustment for any uncertificated securities held by the
Subscriber shall be made in book-entry form.


 


4.                  
Waiver of Liquidation Distributions; Redemption Rights. In connection with the Shares purchased pursuant to this Agreement,
the Subscriber hereby waives any and all right, title, interest or claim of any kind in or to any distributions by the Company
from the trust account, which will be established for the benefit of the Company’s public stockholders and into which substantially
all of the proceeds of the IPO will be deposited (the “Trust Account”), in the event of a liquidation of the
Company upon the Company’s failure to timely complete an initial business combination. For purposes of clarity, in the event
the Subscriber purchases Units in the IPO or Class A Ordinary Shares in the aftermarket, any additional Class A Ordinary Shares
included in the Units or Class A Ordinary Shares so purchased shall be eligible to receive any liquidating distributions by the
Company. However, in no event will the Subscriber have the right to redeem any Shares into funds held in the Trust Account upon
the successful completion of an initial business combination.


 


5.                  
Restrictions on Transfer.


 


5.1              
Securities Law Restrictions. In addition to any restrictions to be contained in that certain letter agreement (commonly
known as an “Insider Letter”) by and between Subscriber and the Company to be dated as of the closing of the
IPO, Subscriber agrees not to sell, transfer, pledge, hypothecate or otherwise dispose of all or any part of the Shares unless,
prior thereto (a) a registration statement on the appropriate form under the Securities Act and applicable state securities laws
with respect to the offer and sale of the Shares proposed to be transferred shall then be effective or (b) the Company has received
an opinion from counsel reasonably satisfactory to the Company, that such registration is not required because such transaction
is exempt from registration (i) under the Securities Act and the rules promulgated thereunder by the Securities and Exchange Commission
and (ii) with respect to all applicable state securities laws. 


 






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5.2              
Lock-up. Subscriber acknowledges that the Shares will be subject to lock-up provisions (the “Lock-up”)
contained in the Insider Letter.


 


5.3              
Restrictive Legends. Any Certificates shall have endorsed thereon legends substantially as follows:


 


“THE OFFER AND SALE OF THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER
THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT COVERING SUCH OFFER, SALE, TRANSFER, PLEDGE OR OTHER DISPOSAL UNDER SUCH ACT OR SUCH LAWS
OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL, IS AVAILABLE.”


 


“THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO A LOCKUP AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED DURING THE TERM OF
THE LOCKUP.”


 


5.4              
Additional Shares or Substituted Securities. In the event of the declaration of a share dividend, the declaration
of an extraordinary dividend payable in a form other than ordinary shares, a spin-off, a share split, an adjustment in conversion
ratio, a recapitalization or a similar transaction affecting the Company’s outstanding shares of ordinary shares without
receipt of consideration, any new, substituted or additional securities or other property, which are by reason of such transaction
distributed with respect to any Shares subject to this Section 5 or into which such Shares thereby become convertible shall
immediately be subject to this Section 5 and Section 3. Appropriate adjustments to reflect the distribution of such
securities or property shall be made to the number or class of Shares subject to this Section 5 and Section 3.


 


5.5              
Registration Rights. Subscriber acknowledges that the Shares are being purchased pursuant to an exemption from the
registration requirements of the Securities Act and will become freely-tradable only after certain conditions are met or the offer
and sale of the Shares is registered under the Securities Act pursuant to that certain registration rights agreement to be dated
as of the closing of the IPO by and between Subscriber, the Company, and the other parties thereto (the “Registration
Rights Agreement”) prior to the closing of the IPO.


 


6.                  
Other Agreements.


 


6.1              
Further Assurances. Subscriber agrees to execute such further instruments and to take such further action as may
reasonably be necessary to carry out the intent of this Agreement.


 


6.2              
Notices. All notices, requests, consents, claims, demands, waivers, and other communications hereunder (each, a
 “Notice”) shall be in writing and addressed to the parties at the addresses set forth on the first page of
this Agreement (or to such other address that may be designated by the receiving party from time to time in accordance with this
Section 6.2). A Notice shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt);
(b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent
by facsimile or email (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next
business day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified
or registered mail (in each case, return receipt requested, postage pre-paid).


 






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6.3              
Entire Agreement. This Agreement, together with the Insider Letter and the Registration Rights Agreement, each substantially
in the form to be filed as an exhibit to the Registration Statement on Form S-1 associated with the Company’s IPO, embodies
the entire agreement and understanding between the Subscriber and the Company with respect to the subject matter hereof and supersedes
all prior oral or written agreements and understandings relating to the subject matter hereof. No statement, representation, warranty,
covenant or agreement of any kind not expressly set forth in this Agreement shall affect, or be used to interpret, change or restrict,
the express terms and provisions of this Agreement.


 


6.4              
Modifications and Amendments. The terms and provisions of this Agreement may be modified or amended only by written
agreement executed by all parties hereto.


 


6.5              
Assignment. The rights and obligations under this Agreement may not be assigned by either party hereto without the
prior written consent of the other party.


 


6.6              
Successors and Assigns; No Third-Party Beneficiaries. This Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective permitted successors and permitted assigns. This Agreement is for the sole
benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is
intended to or shall confer upon any other person or entity any legal or equitable right, benefit, or remedy of any nature whatsoever
under or by reason of this Agreement.


 


6.7              
Governing Law. This Agreement and the rights and obligations of the parties hereunder shall be construed in accordance
with and governed by the laws of New York applicable to contracts wholly performed within the borders of such state, without giving
effect to the conflict of law principles thereof.


 


6.8              
Severability. In the event that any court of competent jurisdiction shall determine that any provision, or any portion
thereof, contained in this Agreement shall be unreasonable or unenforceable in any respect, then such provision shall be deemed
limited to the extent that such court deems it reasonable and enforceable, and as so limited shall remain in full force and effect.
In the event that such court shall deem any such provision, or portion thereof, wholly unenforceable, the remaining provisions
of this Agreement shall nevertheless remain in full force and effect.


 


6.9              
Waivers and Consents. No waiver by any party of any of the provisions hereof shall be effective unless explicitly
set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect
of any failure, breach, or default not expressly identified by such written waiver, whether of a similar or different character,
and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power, or
privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise
of any right, remedy, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power, or privilege. No Notice on a party not expressly required under this Agreement shall entitle the party receiving
such Notice to any other or further Notice in similar or other circumstances or constitute a waiver of the rights of the party
giving such Notice to any other or further action in any circumstances without such Notice.


 


6.10          
Survival of Representations and Warranties. All representations and warranties made by the parties hereto in this
Agreement or in any other agreement, certificate or instrument provided for or contemplated hereby, shall survive the execution
and delivery hereof and any investigations made by or on behalf of the parties.


 






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6.11          
No Broker or Finder. Each of the parties hereto represents and warrants to the other that no broker, finder or other
financial consultant has acted on its behalf in connection with this Agreement or the transactions contemplated hereby in such
a way as to create any liability on the other. Each of the parties hereto agrees to indemnify and save the other harmless from
any claim or demand for commission or other compensation by any broker, finder, financial consultant or similar agent claiming
to have been employed by or on behalf of such party and to bear the cost of legal expenses incurred in defending against any such
claim.


 


6.12          
Headings and Captions. The headings and captions of the various subdivisions of this Agreement are for convenience
of reference only and shall in no way modify or affect the meaning or construction of any of the terms or provisions hereof.


 


6.13          
Counterparts. This Agreement may be executed in one or more counterparts, all of which when taken together shall
be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered
to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature
is delivered by facsimile transmission or any other form of electronic delivery, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such signature
page were an original thereof.


 


6.14          
Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If
an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof will arise favoring or disfavoring any party hereto because of the authorship of
any provision of this Agreement. The words “include,” “includes,” and “including”
will be deemed to be followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders
will be construed to include any other gender, and words in the singular form will be construed to include the plural and vice
versa, unless the context otherwise requires. The words “this Agreement,” “herein,” “hereof,”
 “hereby,” “hereunder,” and words of similar import refer to this Agreement as a whole and
not to any particular subdivision unless expressly so limited. The parties hereto intend that each representation, warranty, and
covenant contained herein will have independent significance. If any party hereto has breached any representation, warranty, or
covenant contained herein in any respect, the fact that there exists another representation, warranty or covenant relating to
the same subject matter (regardless of the relative levels of specificity) which such party hereto has not breached will not detract
from or mitigate the fact that such party hereto is in breach of the first representation, warranty, or covenant.


 


6.15          
Mutual Drafting. This Agreement is the joint product of the Subscriber and the Company and each provision hereof
has been subject to the mutual consultation, negotiation and agreement of such parties and shall not be construed for or against
any party hereto.


 






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7.                  
 Voting and Tender of Shares. The Subscriber agrees to vote the Shares in favor of an initial business combination
that the Company negotiates and submits for approval to the Company’s stockholders and the Subscriber shall not seek redemption
with respect to such Shares. Additionally, the Subscriber agrees not to tender any Shares in connection with a tender offer presented
to the Company’s stockholders in connection with an initial business combination negotiated by the Company.


 


8.                  
Indemnification. Each party shall indemnify the other against any loss, cost or damages (including reasonable
attorney’s fees and expenses) incurred as a result of such party’s breach of any representation, warranty, covenant
or agreement in this Agreement.


 


[Signature Page Follows]


 






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If the foregoing accurately sets forth
our understanding and agreement, please sign the enclosed copy of this Agreement and return it to us.


 


Very truly yours,


  


	 	STONEBRIDGE ACQUISITION CORPORATION,
	 	 	 
	 	By:	/s/ Bhargava Marepally
	 	 	Name: Bhargava Marepally
	 	 	Title: Director



 


Accepted and agreed as of the date first written
above.


 


	STONEBRIDGE ACQUISITION SPONSOR LLC,	 
	 	 	 	 
	a Delaware limited liability company	 
	 	 	 	 
	 	By: BP SPAC SPONSOR LLC, a Texas limited liability company	 
	 	 	 	 
	 	Its managing member	 
	 	 	 	 
	 	By:	/s/ Prabhu Antony	 
	 	Name:	Prabhu Antony	 
	 	Title:	Managing Member	 



 


[Signature Page to Subscription Agreement]